Domestic public cloud market to touch $1.7 billion in 2017: Report

Global analyst firm Gartner has estimated a 43 per cent growth in the public cloud services market in the country in 2017 to USD 1.9 billion.

However, for 2018, the report sees a slowdown in growth pace to 29 per cent at USD 2.63 billion and to USD 3.34 billion in 2019.

"Ongoing new entries into the public cloud managed service provider and migration services space indicate continued overall growth in net new and migrated workloads," Sid Nag, its research director, said.

In the note, he said public cloud infrastructure as a service (IaaS) continues to be dominated by hyperscale providers and their ecosystems that are driving growth.

Nag said hybrid cloud solutions will drive the overall cloud adoption and overall IaaS trajectory at the same rate as past quarters.

IaaS will be delivering the highest growth at 42 per cent to USD 699 million, followed by 33.5 percent in platform as a service (PaaS) to USD 169 million and 33.3 percent growth in software as a service (SaaS) to USD 651 million, he said.

The research firm said the worldwide demand for IaaS will continue with strong growth through 2021.

Pointing to the decline in growth rates it expects over the next three years, the report said this is indicative of the mainstreaming of cloud services in the market for IT spending generally.

"Around 18 per cent of IT spending generally was directed to cloud in 2016 worldwide and is expected to increase to 21 per cent in 2018. In 2016, around 17 per cent of total addressable market for cloud infrastructure, middleware, application and business process services shifted to the cloud," it said.